Service provider router sales spiral

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Service provider router sales spiral

Antony Savvas

Worldwide service provider router and switch revenues grew 33% in 2006 when compared to 2005.

Analyst Infonetics Research said sales increased from £3.7bn in 2005 to £4.9bn last year, fuelled by surging carrier Ethernet switch and IP router sales.

The strong annual growth in the overall market, said Infonetics, is especially impressive considering multi-service ATM switch revenue dropped 32% to £510,000 during the same period, after a high of nearly £2.5bn in 2000.

Infonetics analyst Michael Howard said, “As ATM investment steeply declines, we see investment in the network edge continuing to grow, with IP edge routers growing at a fast clip between 2006 to 2010, and carrier Ethernet switches (CES) growing three times as fast.”

Howard said, “Carriers continue to migrate to IP, as witnessed by the many IP network transformation projects around the globe to increase bandwidth for video and other advanced applications, and CES and IP edge routers are a big part of this transformation.”

Infonetics said Cisco was the market leader in sales, followed by the newly-merged Alcatel-Lucent in second place, and Juniper in third place.

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